Revenue court case reveals scandal.
A trial at the Old Bailey is prizing open the mysterious and murky world of Inland Revenue tax investigations.
The prostitute girlfriend of the senior Inland Revenue tax investigator accused of taking bribes from foreign businessmen was due to be called back to the Old Bailey this week.
Michelle Corrigan, 30, told the court last week of Michael Allcock’s lavish expenditure on her between 1989 and 1992. She claimed he paid her rent, bought her designer clothes, a u650 watch, holidays in Spain and gave her u3,000 towards a car.
Allcock, 47, from Colchester, Essex, denies 13 corruption charges between 1987 and 1992 when he was suspended from his job.
Two businessmen, oil consultant Hisham Alwan, 56, of Knightsbridge, and property developer David Shamoon, 66, who Allcock was allegedly investigating have both denied four charges of trying to bribe Revenue officers.
Three other men are also named as having allegedly bribed Allcock. Revenue rules state that gifts cannot be sought or accepted.
The Old Bailey heard a string of allegations against Allcock – branded a ‘fearless maverick’ by his colleagues. According to the prosecution, he was corrupted by the wealth he encountered during his investigations.
Allcock is alleged to have taken luxurious holidays and received more than u150,000 in bribes in return for providing favourable treatment of his targets’ tax affairs.
The jury heard he used some of the money to fund a lavish lifestyle way beyond the means of his Revenue salary of u45,000 which included paying for the upkeep of Corrigan, who later became his lover.
Defence lawyer Anthony Arlidge QC compared the affair, which included lavish spending sprees at Harvey Nichols and Christian Dior, to the film Pretty Woman.
Allcock headed a team of ‘ghostbusters’ – officers charged with investigating the complex tax affairs of wealthy foreign businessmen, mainly from the Middle East, who had never registered for UK tax. The court heard that Allcock’s squad netted over u100m in lost revenue.
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High-profile investigations included Lebanese Marwan Kalo, who made his fortune by investing in Highland Spring bottled water, when an u800,000 tax liability was written off at ‘the stroke of a pen’ according to the prosecution lawyer John Black.
Allcock then allegedly agreed a u50,000 tax settlement, but asked if the agreement could be made abroad. Jurors heard that Allcock and a junior colleague flew to Nice, at Kalo’s expense, were wined, dined and played the casino tables.
The trial is due to last well into 1997.